The world is transforming from one of oil and gas to a world of technology in which solar and wind power will become prevalent as cheaper energy sources, according to Steve Westly, a former board member of Tesla and founder of the investment company Westly Group on Wednesday.
Speaking at the ONS 2022 International Energy Conference in Stavanger, Norway, Westly said with the drop in lithium-ion battery prices, the transition from oil and gas to technology is evident.
Citing the example of the fall in solar energy prices from the highs of $77 per watt to the current plunge to $0.30 per watt, installed capacity has reached 183 gigawatts.
“This is the beginning of the new energy world. We are in the world of sustainable energy. We are in a period when solar and wind are getting cheaper as energy sources. We are seeing the transition from the world of oil and gas to the world of technology,' he said.
He also maintains that the cost decline in batteries over the last 10 years is evidence of this energy transition.
'The battery cost, which was in the band of $1000 per kilowatt-hour, has dropped to $95 today. The number of li-on battery factories, which was 2 in 2010, has approached 200,” he said.
He predicts that battery installed capacity, which is currently 770 gigawatt-hours, will be 3.7 terawatt-hours in 2030, when 70% of vehicle sales will be electric vehicles.
“General Motors will produce only electric vehicles by 2035, Volvo by 2030 and Chrysler by 2028. In 2014, Tesla alone had 24 supercharging stations and now has more than 520. All of these show us the transformation that has happened and will happen,' he said.
Given the changes that can take place in ten years, he anticipates that companies like Tesla, the sixth largest globally, will play a pivotal role and should be considered an energy company given the technologically advances in batteries.
By Murat Temizer in Stavanger, Norway
Anadolu Agency
energy@aa.com.tr